Making the Most of ACA – 5 Things You Should Know for Tax Time
Here are five things to keep in mind throughout the year to make the most of the Affordable Care Act.
1. Offering employee insurance coverage through the Small Business Health Options Program (SHOP) can set you up to take advantage of tax credits. Plus, you can start the enrollment process during any month of the year.
2. According to the IRS, the Small Business Health Care Tax Credit offers a way for you to recover up to 50% of the premiums you pay for employer coverage. There are regulations, though. You must have fewer than 25 full-time equivalent employees with average annual wages of less than $50,000.
3. Once you’ve offered insurance coverage through SHOP, you’ll need to check for tax credit eligibility. The IRS has a handy tax tool to help you determine if you qualify for the Small Business Health Care Tax Credit and gives you a good idea of how much you might receive.
4. The Additional Medicare Tax, a new regulation under the ACA, requires employers to withhold taxes on wages and some compensations in certain circumstances. Planning now will help you and your employees avoid tax issues later.
5. You must report the cost of coverage under an employer-sponsored group health plan on your employers’ W-2s. It’s kind of complicated, so the IRS has developed a quick-reference chart to help you determine what needs to happen when and where.
ACA reporting is tricky, but APS can take your worries away with our customized ACA module. Contact us today to see how we can help your business.